II 

115TH CONGRESS 

1ST SESSION S. 1409 

To amend the Internal Revenue Code of 1986 to extend the credit for 

residential energy efficient property, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 22, 2017 

Mr. CARPER (for himself and Mr. HELLER) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

the credit for residential energy efficient property, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Technologies for En5 ergy Jobs and Security Act of 2017’’. 

6 SEC. 2. EXTENSION AND PHASEOUT OF RESIDENTIAL EN7 ERGY EFFICIENT PROPERTY. 

8 (a) EXTENSION.—Section 25D(h) of the Internal 

9 Revenue Code of 1986 is amended by striking ‘‘December 

10 31, 2016 (December 31, 2021, in the case of any qualified 


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1 solar electric property expenditures and qualified solar 

2 water heating property expenditures)’’, and inserting ‘‘De3 cember 31, 2021’’. 

4 (b) PHASEOUT.— 

5 (1) IN GENERAL.—Paragraphs (3), (4), and (5) 

6 of section 25D(a) of the Internal Revenue Code of 

7 1986 are amended by striking ‘‘30 percent’’ each 

8 place it appears and inserting ‘‘the applicable per9 centage’’. 

10 (2) CONFORMING AMENDMENT.—Section 

11 25D(g) of the Internal Revenue Code of 1986 is 

12 amended by striking ‘‘paragraphs (1) and (2) of’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall take effect on January 1, 2017. 

15 SEC. 3. EXTENSION AND PHASEOUT OF ENERGY CREDIT. 

16 (a) CREDIT PERCENTAGE FOR GEOTHERMAL EN17 ERGY PROPERTY.—Section 48(a)(2)(A)(i)(II) of the Inter18 nal Revenue Code of 1986 is amended by striking ‘‘para19 graph (3)(A)(i)’’ and inserting ‘‘clause (i) or (iii) of para20 graph (3)(A)’’. 

21 (b) EXTENSION OF SOLAR AND THERMAL ENERGY

22 PROPERTY.—Section 48(a)(3)(A) of the Internal Revenue 

23 Code of 1986 is amended— 

24 (1) in clause (ii) by striking ‘‘periods ending be25 fore January 1, 2017’’ and inserting ‘‘property the 


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1 construction of which begins before January 1, 

2 2022’’; and 

3 (2) in clause (vii) by striking ‘‘periods ending 

4 before January 1, 2017’’ and inserting ‘‘property the 

5 construction of which begins before January 1, 

6 2022’’. 

7 (c) PHASEOUT OF 30-PERCENT CREDIT RATE FOR

8 GEOTHERMAL ENERGY PROPERTY.—Section 48(a)(6) of 

9 the Internal Revenue Code of 1986 is amended— 

10 (1) in the heading, by inserting ‘‘AND GEO11 THERMAL’’ after ‘‘SOLAR’’; 

12 (2) in subparagraph (A), by striking ‘‘para13 graph (3)(A)(i)’’ and inserting ‘‘clause (i) or (iii) of 

14 paragraph (3)(A)’’; and 

15 (3) in subparagraph (B), by striking ‘‘property 

16 energy property described in paragraph (3)(A)(i)’’ 

17 and inserting ‘‘energy property described in clause 

18 (i) or (iii) of paragraph (3)(A)’’. 

19 (d) PHASEOUT OF 30-PERCENT CREDIT RATE FOR

20 FIBER-OPTIC SOLAR, QUALIFIED FUEL CELL, AND

21 QUALIFIED SMALL WIND ENERGY PROPERTY.— 

22 (1) IN GENERAL.—Section 48(a) of the Internal 

23 Revenue Code of 1986 is amended by adding the fol24 lowing: 


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1 ‘‘(7) PHASEOUT FOR FIBER-OPTIC SOLAR, 

2 QUALIFIED FUEL CELL, AND QUALIFIED SMALL

3 WIND ENERGY PROPERTY.—In the case of any en4 ergy property described in paragraph (3)(A)(ii), 

5 qualified fuel cell property, or qualified small wind 

6 property, the energy percentage determined under 

7 paragraph (2) shall be equal to— 

8 ‘‘(A) in the case of any property the con9 struction of which begins after December 31, 

10 2019, and before January 1, 2021, 26 percent, 

11 and 

12 ‘‘(B) in the case of any property the con13 struction of which begins after December 31, 

14 2020, and before January 1, 2022, 22 per15 cent.’’. 

16 (2) CONFORMING AMENDMENT.—Section 

17 48(a)(2)(A) of the Internal Revenue Code of 1986 is 

18 amended by striking ‘‘paragraph (6)’’ and inserting 

19 ‘‘paragraphs (6) and (7)’’. 

20 (e) EXTENSION OF QUALIFIED FUEL CELL PROP21 ERTY.—Section 48(c)(1)(D) of the Internal Revenue Code 

22 of 1986 is amended by striking ‘‘for any period after De23 cember 31, 2016’’ and inserting ‘‘the construction of 

24 which does not begin before January 1, 2022’’. 


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1 (f) EXTENSION OF QUALIFIED MICROTURBINE

2 PROPERTY.—Section 48(c)(2)(D) of the Internal Revenue 

3 Code of 1986 is amended by striking ‘‘for any period after 

4 December 31, 2016’’ and inserting ‘‘the construction of 

5 which does not begin before January 1, 2022’’. 

6 (g) EXTENSION OF COMBINED HEAT AND POWER

7 SYSTEM PROPERTY.—Section 48(c)(3)(A)(iv) of the Inter8 nal Revenue Code of 1986 is amended by striking ‘‘which 

9 is placed in service before January 1, 2017’’ and inserting 

10 ‘‘the construction of which begins before January 1, 

11 2022’’. 

12 (h) EXTENSION OF QUALIFIED SMALL WIND EN13 ERGY PROPERTY.—Section 48(c)(4)(C) of the Internal 

14 Revenue Code of 1986 is amended by striking ‘‘for any 

15 period after December 31, 2016’’ and inserting ‘‘the con16 struction of which does not begin before January 1, 

17 2022’’. 

18 (i) EFFECTIVE DATE.—The amendments made by 

19 this section shall take effect on January 1, 2017. 

20 SEC. 4. WASTE HEAT TO POWER PROPERTY. 

21 (a) IN GENERAL.— 

22 (1) INTRODUCTION OF WASTE TO HEAT POWER

23 ENERGY PROPERTY.—Section 48(a)(3)(A) of the In24 ternal Revenue Code of 1986 is amended— 


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1 (A) at the end of clause (vi) by striking 

2 ‘‘or’’; and 

3 (B) at the end of clause (vii) by inserting 

4 ‘‘or’’ after the comma; and 

5 (C) by adding the following: 

6 ‘‘(viii) waste heat to power property,’’. 

7 (2) DEFINITIONS AND LIMITATIONS.—Section 

8 48(c) of the Internal Revenue Code of 1986 is 

9 amended by adding the following: 

10 ‘‘(5) WASTE HEAT TO POWER PROPERTY.— 

11 ‘‘(A) IN GENERAL.—The term ‘waste heat 

12 to power property’ means property— 

13 ‘‘(i) comprising a system which gen14 erates electricity through the recovery of a 

15 qualified waste heat resource, and 

16 ‘‘(ii) the construction of which begins 

17 before January 1, 2022. 

18 ‘‘(B) QUALIFIED WASTE HEAT RE19 SOURCE.—The term ‘qualified waste heat re20 source’ means— 

21 ‘‘(i) exhaust heat or flared gas from 

22 an industrial process that does not have, 

23 as its primary purpose, the production of 

24 electricity, and 


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1 ‘‘(ii) a pressure drop in any gas for an 

2 industrial or commercial process. 

3 ‘‘(C) LIMITATIONS.— 

4 ‘‘(i) IN GENERAL.—For purposes of 

5 subsection (a)(1), the basis of any waste 

6 heat to power property taken into account 

7 under this section shall not exceed the ex8 cess of— 

9 ‘‘(I) the basis of such property, 

10 over 

11 ‘‘(II) the fair market value of 

12 comparable property which does not 

13 have the capacity to capture and con14 vert a qualified waste heat resource to 

15 electricity. 

16 ‘‘(ii) CAPACITY LIMITATION.—The 

17 term ‘waste heat to power property’ shall 

18 not include any property comprising a sys19 tem if such system has a capacity in excess 

20 of 50 megawatts.’’. 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to periods after December 31, 

23 2016, in taxable years ending after such date, under rules 

24 similar to the rules of section 48(m) of the Internal Rev25 enue Code of 1986 (as in effect on the day before the date 


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1 of the enactment of the Revenue Reconciliation Act of 

2 1990). 

Æ 


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